If you think a “balanced approach” is the right way to go, let’s take a brief look at headlines concerning Connecticut tax revenue in early 2011 as compared stories this week.
Back in April 2011, revenue projections were up. From the Connecticut Business & Industry Association (CBIA)…
Revenues for the current year are more than $600 million above the amount projected at the time the budget was passed. And although official reports have not been released as of the time of this writing, word at the state Capitol is that budget analysts are now projecting that tax receipts for the 2012 fiscal year will register $175 million higher than originally estimated.
Forty-five or so days later, things were still looking good, but the July 1 tax increases – the largest in Connecticut history – were just around the corner.
Taxpayers bracing for a new wave of state tax increases on July 1 are noticing that the state’s current revenue structure is actually doing very well and now projected to bring in nearly $1 billion more this fiscal year than first estimated.
According to the latest report of the Office of Fiscal Analysis (OFA), state taxes revenue will run $960 million more this year than budgeted. That’s $48 million higher than last month’s projection.
Lawmakers should review carefully the revenue levels actually needed to make the state budget work, and question whether we are taking too much money out of Connecticut’s economy at a time when we need it to grow and create jobs.
Yeah, not so much. Gov. Dannel Malloy has some explaining to do, but will we actually ask him the hard questions? Malloy will argue his plan was a balanced approach, but I say that’s a total misconception of what really happened. There were little concessions and no budget cuts at all.
From The Hartford Courant seven months ago…
A new state budget report Monday showed a steep decline in tax revenues and a widening deficit now projected at $200 million for the current fiscal year that ends June 30 — and it instantly reheated last year’s political debate over Democratic Gov.Dannel P. Malloy’s plans to fix government finances.
From WTNH five days ago.
A new report from the state’s legislative and executive branch budget offices shows Connecticut’s tax revenues are running approximately $52.7 million behind what’s anticipated in the state budget.
From Boston.com 17 hours ago, with my emphasis in bold.
Gov. Dannel P. Malloy’s budget director confirmed Wednesday the state’s budget deficit has grown to about $365 million, requiring the governor to submit a deficit-cutting plan to the General Assembly.
In testimony before the legislature’s Appropriations Committee, Benjamin Barnes said the new figure includes declines in expected state revenues and increased spending for Medicaid services. Barnes said the Office of Policy and Management has already begun work on a deficit-cutting plan for Malloy’s consideration.
‘‘While I’m not prepared today to address any elements that might or might not be included in that plan, you can expect that we will announce specifics as soon as possible,’’ he said. Malloy has said he would not support raising taxes to cover the budget gap.
Why not support raising taxes? He said revenue increases had to happen to get us out of the 2010/2011 fiscal issues in Connecticut. Well, his tax increases did not seem to help, so why not double-down and say something like “if we had not raised taxes before, imagine the difficulty we would be in now … it would be three-times as bad!”
If someone can take the time to find the actual budget table projections for expected vs. actual revenue and post the link in the comments, it would be appreciated.